BigBasket’s B2C arm witnesses losses of 89% in FY23, revenue remains flat

The business to consumer unit of Tata-owned BigBasket, innovation retail has witnessed a loss of over 89% in FY23.
The losses of innovation retail jumped from ₹813 crore in FY 2022 to ₹1,535 crore in FY 2023 as per the latest regulatory filings. The losses saw a growth rapidly but did not translate to a higher topline. The revenue from operations registered by innovation retail saw a mere 5 percent growth from ₹7,096 crore in FY22 to ₹7,434 crore in FY23.
The sluggish revenue projection was the outcome of large expenses company incurred during the year. The expenses of B2C arm increased to 13 percent over the year from ₹7,929 crore in FY22 to ₹8,998 crore in FY23. As per the regulatory filings the higher expenses were seen in employee spending, finance costs and other miscellaneous expenses.
A total of ₹916 crore was spent by innovation retail on employee benefit which is 24 percent higher to ₹739 crore the company spent in FY22.
Other large costs the company had to bare was in Advertising and logistics sector. The logistics cost of innovation retail saw a shoot of over 50 percent from ₹454 crore in FY22 to ₹682 crore in FY23, similarly advertising costs also doubled from ₹184 crore to ₹385 crore.
The reason behind growth in BigBasket’s advertising costs can be attributed to its competition from players like Swiggy Instamart , Zepto, Dunzo and Blinkit.